Repaying Student Loans 2009/10 guide discussion

Poolie

This sounds like it could relate to a grant overpayment from the time of your study. Unfortunately there is no date in which the debt is statue bared for student loans.

Apart from a loan did you have any kind of grant?
Best to call the number of the letter tomorrow and ask them how the overpayment has been calculated.

pocketstrings

Hi there, I have read the MSE article on this, but am still not sure if I'm doing the right thing.

I have a student loan from my degree which was 1997-2000. I never paid it off because I didn't earn enough while working, then I got seriously ill in 2004 and to my horror haven't been able to work since.

But then, due to inheriting some cash from a relative who died I got enough to pay it off. Should I?

So far, since the inheritance, I have not paid the SL off on the basis that as far as I know student loans are cheap and I thought I could earn more by putting the cash in a savings account and earning interest. Am I right?

Also, the loan is now very old and as I am unlucky enough to be so ill, it is even possible I may never work again and the loan would be cancelled anyway.

Obviously I am hoping I WILL work again, but this is nevertheless something to consider.

What should I do??

Karenna

Hi, I moved to Australia last year and have just been assessed for my student loan repayments on my income here. They are now taking 244 pounds out of my uk bank account monthly. I have about 12,000 pounds outstanding from a 2003-2006 loan. As we're in a good financial position at the moment are we best to get this paid off as quickly as possible or are we better putting more money into our savings for a house here? Either way its going to be a real pain transferring that amount of money a month! Any advice welcome as I just want to bury my head and forget about this stupid loan!!! Thanks,

Poolie

pocketstrings wrote: »

Hi there, I have read the MSE article on this, but am still not sure if I'm doing the right thing.

I have a student loan from my degree which was 1997-2000. I never paid it off because I didn't earn enough while working, then I got seriously ill in 2004 and to my horror haven't been able to work since.

But then, due to inheriting some cash from a relative who died I got enough to pay it off. Should I?

So far, since the inheritance, I have not paid the SL off on the basis that as far as I know student loans are cheap and I thought I could earn more by putting the cash in a savings account and earning interest. Am I right?

Also, the loan is now very old and as I am unlucky enough to be so ill, it is even possible I may never work again and the loan would be cancelled anyway.

Obviously I am hoping I WILL work again, but this is nevertheless something to consider.

What should I do??

Your loan would only be wiped if you can get a doctor to categorically claimed you would never work again.

In 1997 there were two loans schemes running side by side. Do you have to defer each year or would you be expected to pay it via your salary.

If salary then it would be better to save and pay it back if you start saving.

Otherwise I am not confident on the rules.

Poolie

Karenna wrote: »

Hi, I moved to Australia last year and have just been assessed for my student loan repayments on my income here. They are now taking 244 pounds out of my uk bank account monthly. I have about 12,000 pounds outstanding from a 2003-2006 loan. As we're in a good financial position at the moment are we best to get this paid off as quickly as possible or are we better putting more money into our savings for a house here? Either way its going to be a real pain transferring that amount of money a month! Any advice welcome as I just want to bury my head and forget about this stupid loan!!! Thanks,

The interest rate on your loan is currently 1.5%. You should be able to get a better rate on a savings account.

If you know that slc will require £244 for the next 11 months could you not transfer this to your UK bank account in one go or split it to cover a 6 month period. This would save you the iban costs associated with international money transfers.

Student loans shouldn't affect your ability to get a mortgage however things could be very different in Australia.

pocketstrings

Poolie - hallo, and thanks very much for looking at my post and taking the time to respond.

Once a year I get a letter and am able to defer on the basis that my monthly income is far below the amount where I would start repaying. This has been the case all along. ie With my loans, they look at my monthly income and if it is high enough they take x amount out of my bank account each month.

They wipe the loan either if it has been 25 years (for me it has been about 13) or if, as you say, you are too ill ever to work again. This latter could sadly be the case for me, but I hope medics will invent something one day!

Any other thoughts? Any one else with advice?

Poolie

pocketstrings wrote: »

Poolie - hallo, and thanks very much for looking at my post and taking the time to respond.

Once a year I get a letter and am able to defer on the basis that my monthly income is far below the amount where I would start repaying. This has been the case all along. ie With my loans, they look at my monthly income and if it is high enough they take x amount out of my bank account each month.

They wipe the loan either if it has been 25 years (for me it has been about 13) or if, as you say, you are too ill ever to work again. This latter could sadly be the case for me, but I hope medics will invent something one day!

Any other thoughts? Any one else with advice?

If you don't have to declare the money on the deferment form I would continue to defer.

Either the 25 year term will end, or a doctor signs you off as unable to ever work again and they generally don't want to do this or as you say you start working.

pocketstrings

Thanks, Poolie.

I don't have to declare the money on the forms, just my monthly income.

The only thing is, if I am well enough to work in the future (fingers crossed, though my surgeon shocked me by telling me last year that that wasn't going to happen. I am choosing to ignore that remark of his!) my debt will be bigger by then as it will have racked up interest. What do you think about this?

What do others of you think?

Poolie

This is true the debt will be higher due to all the years of deferment so when they calculate the repayment for each year yours will be a higher.

smelanie_2

Hi, My current salary is under the "repayment" threshold for Pre-1998 student loans. I do however receive rental income additionally for a property I pay the mortgage on. The tax office have deemed a percentage of this to be taxable. Should any of this income be included for repayment of student loan? As this would send my income over the repayment threshold. The SLC have only asked for salary information not any additional income. Please advise.